Forum Archive Index - February 2000

[Derek Watt <dkw@paradise.net.nz>]

Hi,
Tower has averaged 25% growth per year since 1990. This year Tower
Announced its entry into China perhaps indicating that this growth average 
has every chance of continuing. The asset backing is $4.69 per share
and at $4.85 a share the P.E. ratio is running about 11.

If this growth continues and the PE stays about the 11 then this time
next year I would expect TWR shares to be at $4.85 * 1.25 = $6.06 a share
At this price TWRCA (partly paid shares) will be about $3.21

TWRCA are now at around $2.20. Therefore one could reasonably expect a
45% increase in price for TWRCA in the next year all else being equal.

(I own TWRCA shares, but may sell soon as I believe there are
better oportunities out there at the moment.)

Derek W



At 10:54 AM 2/13/00 +1300, you wrote:
>Margie,
>I wouldn't say I'm altogether on the ball, I try to be a tad conservative
>to avoid getting done in the next crash, whenever it comes. Hopefully
>the white-hot computer technology advance will delay it for some time.
>We did have a minor discussion on TWR in Sharechat a few weeks ago
>and I think I can summarise it by saying that TWR is a smallish medium
>player in a very crowded and competitive Insurance & scene in Australasia.
>I think there is both limited downside and upside in TWR and the best
>hope is that there will be a lucrative takeover offer but God knows when.
>cheers,
>Hugh
>
>
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-----------------------------------
Derek Watt
http://members.tripod.com/DKWatt/
-----------------------------------




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